Background
SEB representatives have for several years been active in the EU Platform on Sustainable Finance, an advisory group to the European Commission.
About the EU Platform on Sustainable Finance
The simplification updates touch on several major EU sustainability regulations.
Firstly, the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS) have been changed. These regulate reporting on impacts, risks and opportunities in large companies and their value chains.
To ease the reporting burden related to CSRD and ESRS, some temporary measures are now being introduced. These will be valid until 2026 and in effect mean that:
• Companies with fewer than 750 employees can skip a significant number of disclosures.
• Companies with more than 750 employees but less than 1000 employees will continue reporting with a few simplifications.
• Companies with more than 1000 employees will continue reporting according to existing ESRS with limited adjustments.
• A new, revised version of ESRS is then expected to be introduced in 2027.
Secondly, the Carbon Border Adjustment Mechanism (CBAM) – which applies a carbon price to imports of emissions-intensive goods such as steel, cement, aluminum, fertilizers, electricity, and hydrogen – has also been adjusted. Fewer companies will now need to report under CBAM, due to a new threshold of 50 tons of CO₂ per year. This still captures 99% of emissions but reduces the number of reporting companies by 90%.
Thirdly, more adjustments are underway – including changes to the Sustainable Finance Disclosure Regulation (SFDR), which are expected later this year or early next year.
Note: Information outlined in this article is subject to change. To ensure that you have the most up-to-date information, always refer to the official EU sources.